A few key results

Science-based target

Set to reduce our 2025 greenhouse gas emissions by 51% against a restated 2015 baseline.

$70bn environmental financing target

Financing activities planned to help address climate change and support the transition to a low carbon economy have increased to $70bn by 2025 from our previous target of $55bn.

Why is this important?

NAB recognises that climate change is a significant risk and a major challenge for the global economy and society. Financial regulators have also acknowledged climate change is a systemic financial risk which they are incorporating into supervisory frameworks.

We support the transition to a low-carbon economy, and will seek to manage our portfolio to align with the Paris Agreement goal of keeping global warming to less than two degrees Celsius, striving for 1.5 degrees Celsius above pre-industrial levels. We will review targets each year against the latest global climate scenarios and relevant technology developments.

NAB is taking a range of actions to help meet the temperature goals of the Paris Agreement, while supporting security of energy supply in Australia and New Zealand, and working with customers, related suppliers and their employees and communities in which they operate.

These measures include:

  • Providing a target of $70 billion of environmental finance by 2025. This increased in 2019 from our previous target of $55 billion. We are Australia’s leading arranger of project finance for Australian renewable energy and 19% of our project finance portfolio as at 30 September 2020 was for renewable energy. In addition, renewables now represent 72% of our power generation exposure.
  • Aligning our business with the temperature goals of the Paris Agreement: to keep global warming to less than two degrees Celsius, striving for no more than 1.5 degrees Celsius above preindustrial levels and supporting a just transition to a net zero emissions economy by 2050. We were the first Australian bank to sign the Collective Commitment to Climate Action, incorporating a range of commitments to align our business with efforts to limit global warming to well-below 2 degrees Celsius, striving for 1.5 degrees Celsius. To achieve this, we have committed to align our lending portfolio with net zero emissions by 2050.
  • Capping thermal coal mining exposures at 2019 levels, reducing by 50% by 2028 and intended to be effectively zero by 2035 apart from residual performance guarantees to rehabilitate existing coal assets. We now expect our thermal coal mining exposure to reduce by 50% by 2026, and to be effectively zero by 2030.
  • Continuing to support existing customers across the mining and energy sectors to facilitate an orderly transition to a low-carbon economy, however NAB will not finance:
    • new thermal coal mining projects or new-to-bank thermal coal mining customers.
    • oil/tar sands extraction projects.
    • oil and gas projects within or impacting the Arctic National Wildlife Refuge area and any similar Antarctic Refuge.
    • new, or material expansions of, coal-fired power generation facilities, unless there is technology in place to materially reduce emissions.
  • Working closely with 100 of our largest greenhouse gas emitting customers to support them in developing or improving their low carbon transition plans by 2023.
  • We joined the RE100 initiative in 2019 and have committed to sourcing 100% renewable electricity by 2025.

A long-standing objective of our climate change strategy has been to learn by doing and then incorporate this knowledge into how we manage environment, social and governance (ESG) risks and provide products and services to assist our customers.

Sustainability – as part of our ‘long-term’ approach – is now explicitly included in NAB’s Group Strategy. We are working to align our long-term goals with the United Nations’ Principles for Responsible Banking, the Paris Agreement and the United Nations Sustainable Development Goals where we expect to have the biggest impact. These include SDG #7 ‘Affordable and clean energy’ and SDG #13 ‘Climate action’.

Our climate change strategy focuses on the following four areas:

  • Leadership commitments
  • Developing climate change knowledge and insights
  • Supporting our customers through the low-carbon transition
  • Investing in organisational capability to identify and respond to climate change risks and opportunities.

For more details about our climate change strategy and governance refer to our Sustainability Report (PDF, 2.3 MB).

Download our Environmental Agenda (PDF, 301 KB).

Important Information

1. Data Source: Rankings based on IJGlobal League Table, MLA, Renewables, Last 12 months ending 30 September 2020, Value of Deals (database searched on 16 October 2020).

What do we do?

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Environmental performance

Our environmental targets, assurance and certifications help us operate more efficiently while addressing key environmental challenges.

Environmental products and services

We’re helping our customers take action for the good of the environment and their business.

Natural Capital

We’re integrating natural capital considerations into our day-to-day decision making and risk assessment processes.

Resource scarcity

We’re working towards minimising waste and reducing consumption.